TUI signs sale and leaseback deal for three 737 MAX aircraft
TUI Group confirmed the signing of a sale and leaseback agreement with BOC Aviation for five new Boeing 737 MAX-8 aircraft on Monday, for a total of $226m (£173.06m).
The FTSE 250 travel company said the first aircraft was expected to be delivered in the first quarter of the 2021 financial year, with the remaining four aircraft to be delivered ahead of the summer 2021 season.
It said that, in line with its asset-right strategy as outlined in its 2019 results, the sale and leaseback agreement with BOC Aviation would finance five new Boeing 737 MAX-8 aircraft as part of its planned re-fleeting programme.
“We expect the lease agreement with BOC Aviation, on standard commercial terms, to create a total lifetime lease obligation of around €223m to commence by the end of the 2021 financial year,” the TUI board said in its statement.
“We expect further sale and leaseback financing on our future deliveries beyond 2021, in line with our newly agreed deferred re-fleeting programme with Boeing.”